General Dynamics Corp.

February 8, 1986|By Deanne Brandon

AMNESTY. The Defense Department Friday lifted its suspension of General Dynamics Corp., allowing the company to resume bidding on military contracts. In December, the St. Louis-based company was barred from receiving new government orders because of a federal indictment charging General Dynamics and four of its officers with defrauding the Army of $3.2 million on a $39 million contract. The debarment was unusually severe because it affected all of the company's divisions and was not restricted to Defense contracts. General Dynamics still faces at least three federal grand jury investigations and ''10 to 15'' separate Defense Department probes, a top Navy official disclosed Friday, but those investigations of past activities will not hinder its bidding on future contracts.